Houston is set to get its own oil futures, a sign of the city’s growing importance as the U.S. sends more crude abroad.

Intercontinental Exchange Inc.
is planning a new crude futures contract with physical delivery in Houston, the company said Tuesday. The contract will provide traders with direct access to Houston prices. The exchange is aiming to launch this quarter, subject to regulatory review.

For decades, the benchmark for U.S. oil prices has been in Cushing, Okla., because of its accessibility through major pipelines and extensive storage space. However, with the U.S. on track to become a major energy exporter, some analysts say that pricing power is shifting to the Gulf Coast, where oil gets loaded onto tankers and shipped overseas.

“Houston’s become the main trading hub,” said Jeff Barbuto, vice president of oil markets at ICE. “It’s a better representation of the economics of where U.S. crude production meets the water to be exported.”

U.S. exports of crude oil have surged since a 40-year-old ban was lifted in 2015. In June, crude exports reached a record high of 3 million barrels a day, and have since stayed at about 2 million barrels a day. Meanwhile, U.S. shale companies are producing at record levels of 10.9 million barrels a day.

Right now, those who want to trade Houston prices use futures that track Cushing prices and contracts that track the difference between the two locations. An outright Houston contract could help streamline the process for traders and companies looking to lock in prices for their crude.

“This will help our customers through the process of hedging their risk around those differentials,” said Mark Roles, vice president of commercial crude oil at
Magellan Midstream Partners
LP, whose East Houston terminal will act as the settlement and delivery point for the new contract.

“As more volumes hit the international market, we’re going to see a much stronger need for pricing and hedging,” he said.

Several times this year, Cushing prices were influenced by logistical issues, creating headaches for producers, said John Coleman, an analyst at energy consultancy Wood Mackenzie.

“There’s a lot of guesswork that goes into factors impacting Cushing,” Mr. Coleman said. “A coastal-based contract is going to be much more relevant in selling crude into the global market.”

Houston may also start competing with other major export locations such as Corpus Christi, analysts said, as more infrastructure is built out to ship crude overseas. On Tuesday, Enterprise Product Partners LP announced plans to develop a crude export terminal off the Texas Gulf Coast.